Final Rule on Association Health Plans

The Department of Labor (DOL) recently published a final rule broadening the criteria for how employers can join to form an Association Health Plan (AHP). This rule will allow more small employers and working owners (including sole proprietors) to form an AHP, which can be considered a large group health plan for purposes of applying other laws, including state insurance laws. Small employers and working owners can then avoid small group or individual rating rules and take advantage of the large group health plan rules under laws such as the Affordable Care Act and the Employee Retirement Income Security
Act (ERISA).